medium · Volume Spread Analysis climaxes-tests-springs-upthrusts

In a bullish two-bar reversal, what does it mean if the second bar (the up-bar) has significantly lower volume than the first bar (the down-bar)?

  1. Market-makers are trapping the buyers on a low-volume bounce
  2. The supply was fully removed on the first bar, requiring little effort to rise
  3. The rally is fake and the market will likely fall further
  4. Professional money is still selling on the second bar

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